Use the Following Information and the Indirect Method to Calculate

Multiple Choice

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Income before taxes…………………………………………… $14,000
Depreciation expense..………………………………………… 12,000
Payment on mortgage payable………………………………… 15,000
Gain on sale of land…………………………………………… 7,500
Increase in merchandise inventory……………………………. 2,050
Increase in accounts payable………………………………….. 6,150
Proceeds from sale of land……………………………………. 8,000
Income taxes paid……………………………………………... 1,700

A) $12,700.
B) $13,900.
C) $20,900.
D) $28,400.
E) $35,900.